Pemex Plans Two New Deepwater Exploratory Wells in 2007

Mexican state oil monopoly Petroleos Mexicanos, or Pemex, plans to drill two new exploratory wells in deepwater this year, a company official said.

Carlos Morales, head of Pemex's exploration and production division, said in a conference call with analysts that the wells will be drilled in the deepwater area called Coatzacoalcos Profundo.

Based on seismic studies, Pemex says there could be 10 billion barrels of crude equivalent in Coatzacoalcos Profundo, out of a potential 29.5 billion barrels of crude equivalent in all of Mexico's deepwater territories.

Pemex began exploring the Coatzacoalcos Profundo area in 2004, although Morales said Tuesday that the company doesn't expect to be producing oil from deepwater before 2014.

Deepwater is seen as one of the long-term solutions to replace dwindling output from the giant offshore Cantarell oilfield.

Pemex recently expanded a collaboration agreement with Brazilian state oil company Petroleo Brasileiro, or Petrobras (PBR), which has a lot of experience and know-how in deepwater drilling.

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